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State Street
(NYSE:STT)
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Rating:70Outperform
Price Target:
$201.00
â–²(8.41% Upside)
Action:Reiterated
Date:07/31/26
The score is supported by a strong earnings-call outlook (raised guidance, operating leverage and capital returns) and clear technical uptrend (price above key moving averages). These positives are tempered primarily by weak and volatile TTM cash flow despite solid reported profitability, and only moderate valuation support (P/E ~15.8; ~1.8% yield).
Positive Factors
Scale and market position (AUC/AUM)
Record AUCA and AUM reflect a large, sticky institutional client base and significant operational scale. That scale supports recurring servicing fees, cross‑sell of custody, FX and securities finance, and creates cost advantages that preserve margins and competitive position over the medium term.
Negative Factors
Weak, volatile cash generation
Large, multi‑year swings in operating and free cash flow reduce confidence in earnings‑to‑cash conversion. Persistent or recurrent negative cash flow constrains liquidity, increases reliance on external funding, and undermines the durability of dividends and buybacks unless cash conversion stabilizes.
Read all positive and negative factors
Positive Factors
Negative Factors
Scale and market position (AUC/AUM)
Record AUCA and AUM reflect a large, sticky institutional client base and significant operational scale. That scale supports recurring servicing fees, cross‑sell of custody, FX and securities finance, and creates cost advantages that preserve margins and competitive position over the medium term.
Read all positive factors
State Street Key Performance Indicators (KPIs)
Any
Revenue by Type
Analyzes revenue streams such as fees, interest, and trading income, highlighting the company's diverse income sources and potential vulnerabilities or strengths in its business model.
Analyzes revenue streams such as fees, interest, and trading income, highlighting the company's diverse income sources and potential vulnerabilities or strengths in its business model.
Data provided by:
The Fly
The FlyState Street (STT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$50.59B
Dividend Yield1.82%
Average Volume (3M)2.58M
Price to Earnings (P/E)16.0
Beta (1Y)1.08
Revenue Growth1.05%
EPS Growth27.32%
CountryUS
Employees51,503
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)11.53
Shares Outstanding274,701,750
10 Day Avg. Volume2,835,492
30 Day Avg. Volume2,578,305
Financial Highlights & Ratios
PEG Ratio0.92
Price to Book (P/B)1.32
Price to Sales (P/S)1.62
P/FCF Ratio8.55
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$199.13Price Target Upside7.41% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
EPS Forecast (FY)13.58
Revenue Forecast (FY)$15.72B
State Street Business Overview & Revenue Model
Company Description
State Street Corporation (STT) is a well-established global financial services firm that delivers a wide array of financial products and specialized services to institutional investors worldwide. The company's extensive offerings include core inve...
How the Company Makes Money
State Street makes money mainly by charging fees and earning net interest income tied to the institutional investment and trading activity it supports.
1) Servicing fees (asset servicing and related functions): A large portion of revenue comes fr...
State Street Earnings Call Summary
Earnings Call Date:Jul 16, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 20, 2026
Earnings Call Sentiment Positive
The call conveyed a broadly positive message: State Street reported record revenues, strong EPS growth, expanding margins and ROTCE, robust asset and inflow metrics, and meaningful progress across markets and investment management. Management raised 2026 guidance, set ambitious medium‑term targets (35% pretax margin; mid‑20s ROTCE), and outlined a $1B transformation program to drive productivity and revenue uplift. Notable near‑term headwinds include a decline in software services revenue (driven by timing of renewals), higher expenses tied to revenue‑related costs and strategic investments, one‑time transformation costs (~$500M), and the early‑stage nature/regulatory uncertainty of digital asset initiatives. Overall, highlights materially outweigh lowlights given strong operating performance, upgraded guidance, capital returns, and a clear transformation plan — supporting a Positive sentiment.Positive Updates
Record Revenue and Strong EPS Performance
Total quarterly revenue rose 17% year‑over‑year to a record $4.0 billion; GAAP EPS for 2Q26 was $3.65 vs. $2.17 in 2Q25. Excluding prior-year notable items, earnings grew ~44% year‑over‑year driven by record fee revenue, record servicing, management and FX trading revenues, and record net interest income.
Negative Updates
Software Services Revenue Decline
Software services revenue fell 14% year‑over‑year (ex‑prior notable items), driven by elevated on‑premises renewals in the prior year; however, underlying software & data revenue rose ~10% YoY, annual recurring revenue grew ~14%, and backlog was up ~6%.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Revenue and Strong EPS Performance
Total quarterly revenue rose 17% year‑over‑year to a record $4.0 billion; GAAP EPS for 2Q26 was $3.65 vs. $2.17 in 2Q25. Excluding prior-year notable items, earnings grew ~44% year‑over‑year driven by record fee revenue, record servicing, management and FX trading revenues, and record net interest income.
Read all positive updates
Company Guidance
State Street guided 2026 (ex-notable items) to fee revenue growth of 12–13% and NII growth of 14–15%, with expenses up roughly 8%, implying about 500 bps of positive operating leverage for the year and an expected pretax margin of ~32%; they reaffirm an effective tax rate of ~22% and a total payout ratio target of ~80% (subject to board), having raised the quarterly dividend 10% to $0.92/sh (Q3) and returned $631M in 2Q. Looking to the medium term (3–5 years), management targets a 35% pretax margin and ROTCE in the mid‑20s, expects to deliver 100–150 bps of annual positive operating leverage on average, NII growth in the mid‑single digits (driven by low single‑digit balance‑sheet growth and NIM moving toward the upper end of the 110–115 bps range), plans ~$1.0B of run‑rate transformation benefits by 2029 (~75% expense / ~25% revenue), and contemplates CET1 ≈11% and Tier‑1 leverage ≈5.25–5.75%.State Street Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
70
Positive
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 22.98B | 22.63B | 21.97B | 18.37B | 13.67B | 12.03B |
| Gross Profit | 15.00B | 13.88B | 12.84B | 11.90B | 12.11B | 12.06B |
| EBITDA | 4.94B | 4.29B | 4.00B | 3.20B | 4.48B | 4.73B |
| Net Income | 3.46B | 2.94B | 2.69B | 1.94B | 2.77B | 2.69B |
Balance Sheet | ||||||
| Total Assets | 418.38B | 366.05B | 353.24B | 297.26B | 301.45B | 314.62B |
| Cash, Cash Equivalents and Short-Term Investments | 4.29B | 146.02B | 134.55B | 136.24B | 146.20B | 183.45B |
| Total Debt | 30.47B | 29.80B | 36.79B | 24.37B | 18.27B | 15.18B |
| Total Liabilities | 390.11B | 338.21B | 327.91B | 273.46B | 276.26B | 287.26B |
| Stockholders Equity | 28.27B | 27.84B | 25.33B | 23.80B | 25.19B | 27.36B |
Cash Flow | ||||||
| Free Cash Flow | -5.15B | 4.29B | -14.14B | -126.00M | 11.22B | -7.52B |
| Operating Cash Flow | -5.11B | 5.35B | -13.21B | 690.00M | 11.95B | -6.71B |
| Investing Cash Flow | -28.21B | -13.05B | -39.48B | 12.74B | 6.82B | -2.17B |
| Financing Cash Flow | 44.71B | 8.99B | 51.79B | -13.35B | -18.43B | 9.05B |
State Street Technical Analysis
Positive
185.40
Price Trends
171.47
Positive
155.08
Positive
138.91
Positive
Market Momentum
3.34
Positive
58.19
Neutral
70.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STT, the sentiment is Positive. The current price of 185.4 is above the 20-day moving average (MA) of 182.45, above the 50-day MA of 171.47, and above the 200-day MA of 138.91, indicating a bullish trend. The MACD of 3.34 indicates Positive momentum. The RSI at 58.19 is Neutral, neither overbought nor oversold. The STOCH value of 70.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for STT.
State Street Risk Analysis
State Street disclosed 1 risk factors in its most recent earnings report. State Street reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
State Street Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $49.07B | 12.99 | 61.73% | 1.23% | 8.75% | 28.59% | |
70 Outperform | $50.59B | 15.97 | 12.40% | 1.81% | 1.05% | 27.32% | |
68 Neutral | $33.33B | 15.56 | 17.14% | 1.77% | 3.18% | 37.10% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
54 Neutral | $16.57B | 30.23 | 9.65% | 3.08% | -26.37% | -49.86% |
* Financial Sector Average
STT
State Street
185.23
77.93
72.63%
AMP
Ameriprise Financial
553.58
55.17
11.07%
CG
Carlyle Group
50.64
-7.92
-13.52%
NTRS
Northern
182.41
59.29
48.15%
State Street Corporate Events
Business Operations and StrategyPrivate Placements and Financing
State Street Bank Boosts Funding Through Senior Notes
Positive
Jul 23, 2026
On July 23, 2026, State Street Bank and Trust Company issued $750 million of 4.701% Senior Notes due 2029 and $500 million of 5.217% Senior Notes due 2034 in an offering exempt from registration under U.S. securities law. The bank simultaneously e...
Business Operations and StrategyDividendsFinancial Disclosures
State Street Posts Record Q2 Results, Boosts Dividend
Positive
Jul 17, 2026
On July 16, 2026, State Street reported second-quarter 2026 diluted EPS of $3.65, supported by total revenue of $4.05 billion, up 17% year-on-year, and fee revenue growth of 17%. Net income rose 56% versus the prior year quarter to $1.08 billion, ...
Business Operations and StrategyShareholder Meetings
State Street Shareholders Back Board, Pay and Auditor
Positive
May 26, 2026
At State Street’s annual meeting on May 20, 2026, shareholders representing about 87% of outstanding common stock voted on director elections, executive pay, auditor ratification and a governance-related shareholder proposal. All 13 board no...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.